Louisiana Basic Business Taxes 2012
Louisiana's economic development, finance and tax organizations provide a range of incentive programs to initiate new business and commercial investment. Specific programs include a corporate income tax, corporate franchise tax, and sales and use tax.
Corporate Tax Apportionment Program (Act 415)
In Louisiana, only manufacturers and merchandisers have qualified historically for single-sales factor apportionment, which bases corporate income and franchise taxes only on the proportion of sales that occur within the state. The Corporate Tax Apportion Program enables LED to extend single-sales factor apportionment to highly competitive business development projects in other target sectors including corporate headquarters, logistics/warehousing, data centers, clean technology, destination healthcare, R&D operations, renewable energy, and digital media and software development.
Property Tax Exemption for Non-Manufacturing Firms (Act 499, Act 871)
Louisiana currently offers a 10-year property tax exemption exclusively to manufacturers that are expanding or constructing new facilities in the state. Following passage of a related Constitutional Amendment, the new Property Tax Exemption program would enable LED or any one of several local governmental entities to extend a similar benefit to highly competitive projects in other target sectors including corporate headquarters, distribution facilities, data services facilities, R&D operations, and digital media and software development. The new incentive would only be offered in parishes where all of the following local governmental entities affirmatively opt in to the program: parish governing authority, all municipalities and school boards that levy property taxes, the parish law enforcement district, and the assessor.
Corporate Income Tax:
Four percent on first $25,000; 5 percent on second $25,000; 6 percent on next $50,000; 7 percent on next $100,000; 8 percent on the excess over $200,000. Louisiana allows federal income tax deduction against state income tax liability. Louisiana allows single sales factor apportionment for manufacturers.
Corporate Franchise Tax:
$1.50 per $1,000 on first $300,000 of capital stock, surplus, undivided profits and borrowed capital; $3 per $1,000 above $300,000.
Sales and Use Tax:
Four percent levied on sale of tangible personal property at retail, as well as the use, consumption, distribution or storage of tangible personal property and the sale of services in the state; 1-5 percent local rate; several exemptions provided for sales tax; electricity, water, natural gas, machinery and equipment used by manufacturers are exempt from Louisiana sales tax.
Louisiana has no state property tax. Parish and municipal governments levy property tax on real and tangible property: 10 percent of value of land and improvements for homeowners and 15 percent of value of equipment and improvements for businesses.
Louisiana State Contact:
Louisiana Economic Development
1051 North Third Street
Baton Rouge, LA 70804
Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings.
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